LendEra Review: Ponzi Scheme Lending ICO

LendEra claims to use arbitrage for sourcing ROI to its affiliates. It affirms to reserve 50% of the funds invested as a backup for times when the coin price goes low. However, all these claims are back firing and raising concerns about its legitimacy.
LendEra Review: Ponzi Scheme Lending ICO
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LendEra has not provided any lead about the owners of the company on its website. In addition, the domain (lendera.io) was also registered privately on 2nd December 2017. Hence, I was not able to get the name of the owner of the domain.

LendEra claims that it generates revenue through trading of cryptocurrency on various exchanges. However, there is no evidence provided for this claim and the only verifiable source of ROI remains the affiliate recruitment program.

If you wish to join the affiliate program, you can do it for free. However, this will only allow you the benefits of referral commission. If you want to indulge yourself into full participation, you need to spend a minimum of $100.

As said earlier at many occasions, if a company is not transparent and puts forward the background of the company infront of its affiliates, it is most likely a scam.

LendEra – Compensation Plan

LendEra offers LEC points to its affiliates which ranges between 0.85 dollars to 1.05 dollars. These points are then lent back to the LendEra platform to acquire advertised ROI.

  • Plan 1: You need to invest $100 – $1000 for receiving 26% to 42% ROI monthly for 260 days
  • Plan 2: You need to invest $1001 – $5000 for receiving 26% to 42% ROI monthly as well as 0.1% bonus ROI daily for 220 days
  • Plan 3: You need to invest $5001 – $10,000 for receiving 26% to 42% ROI monthly as well as 0.2% bonus ROI daily for 180 days
  • Plan 4: You need to invest $10,001 or more for receiving 26% to 42% ROI monthly as well as 0.2% bonus ROI daily for 135 days

LendEra – Referral Commission

LendEra referral commission is offered by unilevel structure. An affiliate is placed at the top of the order. The affiliates recruited directly are placed directly under the affiliate who recruited them. For example, if the top affiliate recruits new affiliate, those affiliates will be placed directly under him at level 1. If level 1 affiliates recruit new affiliate, they would be placed on level 2 and so on.

Referral commissions – Initial investment

Referral commission for initial investment cap the commission at level 3.

  • Level 1:5%
  • Level 2: 2%
  • Level 3: 1%

Referral commissions – LEC point lending

LendEra put cap referral commission for LEC lending point at level 6.

  • Level 1: 10%
  • Level 2: 4%
  • Level 3: 2.5%
  • Level 4: 1.5%
  • Level 5: 0.8%
  • Level 6: 0.4%

LendEra also provides referral commission for reinvestment. The commission paid out for reinvestment is capped at level 1 and 3% of the funds invested by the personally recruited affiliates is paid as commission for reinvestment.

LendEra Review

Dennis: Great opportunity. Will look forward to investing more.

Melanie Smith: Big thumbs up. The platform is great and provides instant solution to all queries. This is going to be a bigger deal in coming months.

Conclusion from the above reviews

These reviews are generic and does not predict any benefits in particular. Investing in a company that does not reveal its founder’s details and physical address, is not advisable. The company do not have a FaceBook page. It is present on Twitter and Telegram. However, the replies on the tweets are set to hidden.

The Verdict

LendEra uses positive manipulation and appreciation of price to generate revenue for providing ROI to its affiliate. It further asserts that it is trading cryptocurrency at different exchanges to make huge profit which is used to source the ROI for its affiliate.

Through positive manipulation, LendEra will reserve 50% of the invested funds and will use that money to pay ROI when the price of the coin will go down and will try to exchange it back. However, this plainly is a temporary solution.

Once, the reserve will be over, the company will again come back entirely on new affiliate recruitment, making the entire operation, a Ponzi Scheme.

In addition, the whitepaper depicts a great story of arbitrage. But, the website has no proofs to back the same. They have also mentioned in their whitepaper that the anonymity of the owners was essential as they terror government regulation. This contradicts the statement made by the company of being transparent. They have publicly confirmed that they are involved in fraud and that is why are hiding behind anonymous names.

Alexa has estimated 36% of the traffic coming to the LendEra Platform, is from US. However, they are not registered with SEC which makes it illegal to sell unregistered securities to US citizens.

Hence, it is clear that LendEra is operating Ponzi Scheme and once the recruitment will freeze and the reserve will be over, the anonymous owners will shut down the platform and stop paying ROIs. Majority of the affiliates will lose money. So, stay away from these scammers.

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1 comment on LendEra Review: Ponzi Scheme Lending ICO

  1. Erin

    My Etherium balance disappeared after they released a message that balances have been fixed. Tickets impliy they dont believe or deny it gone, even with the txid that clearly has them withdrawing it and others but on the sites history it now says 0 as the deposit for Etherium.